Here's how much you'd need to earn per year to buy an average home in Vancouver
It's no surprise to most would-be homeowners: anyone looking to buy a home in two major British Columbia cities must have a six-figure income.
A just-published report from mortgage rate comparison site RateHub.ca suggests those hoping to buy an average home in Vancouver need to earn about $231,950 to meet the requirements to obtain a mortgage.
That calculation includes the average home price in the Vancouver area of $1,235,900 – the highest average in the country.
It takes into account a mortgage "stress test" rate and uses the mortgage rate of 5.21 per cent for June 2022. RateHub estimated a mortgage of $988,720, and factored that into the income requirement, and tacked on $4,000 in annual property taxes and $150 for monthly heating.
The income required is based on a 20 per cent down payment. Being able to put more or less down would impact that final number.
Vancouver's required income is high when compared to most of the country, but it's also high compared to the amount needed earlier this year.
The same calculation in March, when the average home price was actually higher, resulted in a required income of $200,220. Just three months later, buyers needed $31,730 more to afford the average, according to the study.
RateHub said the goal of its calculations was to show how much the changing stress test and mortgage rates (5.25 and 3.14 per cent in March) impacted housing affordability.
In Vancouver, buyers now need an income 16 per cent higher, according to the research.
In Victoria, buyers need 23 per cent more than they did back in March.
The provincial capital now has an average home price of $985,500, meaning those looking to buy would have to bring home $187,980 a year to afford that home.
With an increase from the end of Q1 to the end of Q2 of $35,760, Victoria saw the steepest impact by dollar amount and by price, based on this data.
In fact, of all Canadian cities included in the monthly report, only homes in Winnipeg and Edmonton were affordable to those making five-figure salaries.
According to RateHub, buyers in Edmonton need an income of at least $86,770 to buy the average home, and in Winnipeg, families need to be bringing in $78,270.
The average home prices in those cities are $409,300 and $360,900, respectively.
Incomes in other Canadian cities examined last month vary from $108,050 in Calgary up to $179,060 in Hamilton, Ont. See more in the chart below.
Other than Vancouver, Toronto is the only city in which homebuyers need to earn more than $200,000. According to RateHub, the income required in the country's most populous city is $226,500 to buy a home at the average price of $1,204,900.
CTVNews.ca Top Stories
Minister 'outraged' after AFN national chief's headdress taken from Air Canada cabin
The federal minister of Crown-Indigenous relations is calling on Air Canada to 'make things right' with the national chief of the Assembly of First Nations, who said her headdress was removed from an airplane cabin during a flight this week.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
'Violation': CSIS had officer investigated after she reported a superior raped her
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Canada recognizes housing as a human right. Few provinces have followed suit
As more Canadians find themselves struggling to afford or find housing, the country's smallest province is the only one that can point to legislation recognizing housing as a human right.
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
Pro-plastic lobbyist presence at UN talks is 'troubling,' say advocates
Environmentalist groups are sounding the alarm about a steep increase in the number of pro-plastic lobbyists at the UN pollution talks taking place this week.